Following the July meeting, the CBE said it expects headline inflation to stabilize around current levels through the end of 2025 before declining gradually in 2026
Egypt’s inflation rate continued its downward trend in July, marking the second consecutive monthly decline, according to official data recently released by the Central Agency for Public Mobilization and Statistics (CAPMAS).
The moderation was largely driven by falling prices in key food categories, including meat, poultry, fruits, and vegetables.
Urban consumer prices rose by 13.9% year-on-year in July, down from 14.9% in June, signaling a cooling of inflationary pressures that had intensified earlier this year. Between March and May 2025, Egypt had witnessed consecutive spikes in inflation, but recent months show signs of relief for consumers.
On a monthly basis, the Consumer Price Index (CPI) recorded a 0.6% decline in July compared to June 2025—reflecting a rare dip in prices amid broader cost-of-living concerns.
Despite easing inflation in some sectors, other areas continue to see notable price hikes. Housing rents increased by 12.9% annually in July, contributing to a 20.4% rise in the broader housing, utilities, and fuel category, while healthcare costs surged by 37.7%, transport by 34.8%, and education by 10%.
The Central Bank of Egypt (CBE) kept interest rates unchanged during its July policy meeting, marking the second such decision this year. Analysts are now watching closely for the upcoming meeting scheduled later this month, amid speculation about whether the current monetary stance will shift in response to evolving inflation dynamics.
Following the July meeting, the CBE said it expects headline inflation to stabilize around current levels through the end of 2025 before declining gradually in 2026.
However, the forecast remains contingent on non-food price movements and fiscal policy measures, including changes to state-administered prices, which can affect domestic inflation.
